Internationalization & Globalization of Businesses

Lesson Transcript
Instructor: Rob Wengrzyn

Rob has an MBA in management, a BS in marketing, and is a doctoral candidate in organizational theory and design.

To increase opportunities for expansion, many businesses participate in the international market. Explore the internationalization and globalization of businesses and explore various methods companies use to do operate in the world markets. Updated: 08/14/2021

Entering an International Market

When you get up in the morning and go to work, you probably have several choices of which route you will take to go to work. There are probably several different roads or turns you could take that will get you there. Some of those routes might depend on whether you need to grab breakfast on the way in or drop off your kids at school. Just like you have different ways to go to work and there are different reasons for different routes, the same is true for different ways a company can go when thinking about entering an international market.

An error occurred trying to load this video.

Try refreshing the page, or contact customer support.

Coming up next: Managing in International Companies

You're on a roll. Keep up the good work!

Take Quiz Watch Next Lesson
Your next lesson will play in 10 seconds
  • 0:07 Different Routes
  • 0:33 Imports and Exports
  • 0:59 Licensing
  • 1:33 Joint Venture
  • 1:56 Wholly Owned Subsidiary
  • 2:25 Strategic Alliance
Save Save Save

Want to watch this again later?

Log in or sign up to add this lesson to a Custom Course.

Log in or Sign up

Speed Speed

Imports and Exports

In its simplest form, international business is conducted by either importing products and services or exporting products and services.

For example, a car manufacturer in Michigan might import tires from Mexico. In this same scenario, the company in Mexico is exporting tires to Michigan. They are shipping the product or service outside its borders to a foreign country. This is the most accepted and popular form of international business.


In the case of licensing, a company is giving another company the right to make their product. Now, we all love soda, or at least I do. In a licensing situation, Coke (in the United States) would license, or allow, a foreign company to bottle their product. In this situation, they do not have a bottling plant overseas or make any investment. They simply enter into an agreement with a company overseas to do the bottling. They are giving their permission for that company to bottle the soda, and the foreign company pays a licensing fee to Coke for that opportunity.

Joint Venture

Take a look at your knee joint. You have the upper part of your leg and the bottom part, and the knee joint is what holds them together. This is very much like a joint venture. Two companies come together to work as one to produce a product or service. Each company brings something to the venture - maybe manufacturing or technical expertise - but in working together they produce a finished product and form a third company.

To unlock this lesson you must be a Member.
Create your account

Register to view this lesson

Are you a student or a teacher?

Unlock Your Education

See for yourself why 30 million people use

Become a member and start learning now.
Become a Member  Back
What teachers are saying about
Try it now
Create an account to start this course today
Used by over 30 million students worldwide
Create an account